Sep 28 2012
Starbucks to Open First Café in India
Original Globe and Mail article
(Photgraph: Stephen Chernin – Getty Images, The Guardian)
According to the above Globe and Mail article, Starbucks representatives announced today that, after much anticipation, they will be teaming up with local Indian steel-to-beverage conglomerate Tata to open up the first Starbucks outlet in India. Analysts say that Starbucks has been eyeing down the Indian market for years and, in my opinion, this announcement comes at a great time for the world’s largest coffee-chain. Why? Starbucks posted its third-quarter fiscal reports in July. Results show that out of the 116 new stores it opened worldwide between July 2011 and July 2012, 45 of them fall under the China/Asia Pacific segment and revenues in this particular area have increased an incredible 31% (Starbucks Corporation). It only seems logical that the next step is to expand to the rapidly emerging, untapped market that is India. When you factor in India’s already massive economy, its populations general rise in spending power, the lack of serious competition, and India’s well-known affinity for tea, the Indian market serves as a huge long-term opportunity for Starbucks.